NBTA Seminar Oslo
2 September 2013
© 2013 Amadeus IT Group SA
Svend O. Leirvaag
Vice President, Industry Affairs
Amadeus IT Group SA
1
© 2012 Amadeus IT Group SA
Amadeus har en unik posisjon
Verdensledende teknologileverandør i
reiselivsindustrien
© 2012 Amadeus IT Group SA
Tucson
3
Amadeus er allerede på neste
generasjons teknologi (Open
Systems)Migrasjon fra
TPF fullføres I
løpet av 2013
Amadeus er
den første i
industrien til å
migrere helt
og fullt til
Open Systems
© 2012 Amadeus IT Group SA
Bedriftsmarkedet er stadig viktig for Amadeus
+6,600
AeTM
Customers
76
Countries
(+22%)
(+10%)
+6.2m
PNR’s in 2012
(14% growth
on 2011)
28
Languages
Supported
+6.8m
Active
Profiles
160
Currencies
Supported
Open Systems gir helt nye muligheter…
Mobile
Solutions
Payment &
Business
Intelligence
Open
Profile Suite
End-to-end Corporate Travel & Expense Management
Offline/online/
mobile
workflow
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MultiModal
Content/
InterModal
Enabler
Airport
Integration
Amadeus e-Travel Management AeTM
Benefits of AeTM:








Best faring engine
(MasterPricer)
Single View
Amadeus Offers
Mini Rules
European Rail
(SNCF, Deutsche Bahn,
Swedish Rail etc…)
Superior Hotel Content
Rental Car Delivery
& Collection
AirPlus DBI
& AIDA integration
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(
For visual purposes only
IATA R787/NDC
DISCLAIMER: This is intended to recapitulate the situation with regard to IATA
Resolution 787 (NDC) for the benefit of an NBTA and its members. It summarises
information gathered from a wide range of sources, some of which are publicly
available, and include observations of statements made by stakeholders in the last
year on this issue. The views referred to in this document do not necessarily reflect
the position of Amadeus IT Group SA. For further information on the Amadeus
position, we refer to our filing before the DOT of May 2013. Amadeus does not
support R787 in its current form, and has requested IATA to take an initiative to
amend it, involving other stakeholders to participate in this process, in line with
the IATA AGM Resolution of 2 June 2013.
IATA Resolution 787/NDC status
Sequence of events
2011
2012
2013
IATA NDC
WPS
(Oct 2011)
NDC Objective definition
PDG Creation
(Q1 2012)
WPS
(Oct 2012)
NDC “foundational” resolution
vote (40 Airlines)
Open Axis
selection
PADIS
WPS
US DoT AGM
filing
Reso (Sept. 2013) (Oct 2013)
Shopping XML messages
submission
Task Forces
Workgroups
1st DDX WG
(Jul. 2012)
2nd DDX WG
(Nov. 2012)
3nd DDX WG
(Mar. 2013)
Steering committee election &
Creation of 6 TaskForces
4th DDX WG
5th DDX WG
(Mai 2013) (Nov. 2013, TBC)
Pilots
Previous milestones
Next milestones
IATA is in charge of defining the NDC message standards on behalf of its Airline members
10
PDG

Sets objectives & timelines
~15 Airlines

Makes decisions, if needed
Steering Group

Overall coordination
4 Airlines, 1 aggregator, 1 TA,
1 provider

Prepare recommendations
- British Airways; Lufthansa; United
Airlines
- JR Technologies
- UK TA consortium
- ATPCo
IATA NDC: Short History
Oct 2011
Roadmap published
(WPS, Singapore)
Objectives: “Airline Products can be sold through all channels, identifying customers and personalizing offers and prices”
Rationale: “Increase competition [in distribution], stimulate innovation, reduce distribution costs and improve consumer choice”
Q1 2012
PDG Formed by Large
Airlines/Alliances
Star Alliance: Air Canada, United, Lufthansa, Swiss, Singapore / SkyTeam: Delta, Air France/ KLM, Alitalia / OneWorld: BA (AA, IB), Cathay
Pacific, Korean, controlling >55% of all seats globally. No involvement of small/medium sized carriers.
May 2012
Invitation by IATA to DDX Workshop
in July
Travel agent associations or corporate travel buyer associations not invited, despite
having requested IATA on several occasions. Only travel agents to partipate in workshop were HRG and Expedia.
June 2012
Concerns raised and communicated
to IATA by industry stakeholders
WTAAA (World Travel Agents Association Alliance) raising regulatory concerns, ECTAA (European Tour Operators and Travel Agents
Association) expressing additional concerns about process (lack of recognition by IATA, involvement, and «rush» by IATA to approve new
standards); Amadeus and others voicing concerns on several issues.
Jul 2012
First Workshop on NDC
(Geneva)
10 airlines, main PSS/CRS providers (Sabre, Travelport, HP, Google ITA, SITA, Navitaire, Amadeus). Concern by several stakeholders on
process, participation, regulatory issues, technical challenges, that seem not to be taken into consideration by IATA.
Sep 2012
WTAA Conference in WAS
WTAAA held conference with industry associations in WAS . IATA invited to participate to discuss NDC, but declined.Travel agent
representaves expressed concern about the impact of NDC on airfare transparency and competition.
Oct 2012
“Foundational” Resolution 787 vote
at WPS
New Distribution Capability Resolution vote among 38 airlines (of a total 240+ member airlines), approval by acquiescence. JL and TK
abstained. Concern raised by small/medium sized airlines about impact on neutrality and costs. Travel agents associations not getting
response from IATA on key questions about impact of NDC.
Jan 2013
Selection of Open Axis as Message
Standards despite large gap vs
requirements
IATA selects Open Axis XML standards amongst existing providers (OTA or Open Axis as prime contenders). Decision communicated to
working group members in February. ATPCO takes over Open Axis. Google ITA publicly claiming that NDC is a foregone conclusion by IATA,
and that participation in working group is pointless.
May 2013
IATA File for DOT Approval
IATA filing opposed by ca 350+ respondents. 38 airlines express support. Alaskan Airline Association opposing NDC.
May 2013
IATA Leaks to Press and Spins Story
on Amadeus Filing
IATA twists Amadeus’ DOT filing and claiming that Amadeus supports R787, failing to refer to concerns raised by Amadeus and that Amadeus
does not support R787 in its current form.
June 2013
«Canned» demo and new resolution
at IATA AGM
IATA AGM adopts resolution that gives hope that IATA will actually change R787 in line with concerns raised by stakeholders. IATA later says
new AGM resolution is not linked to R787, and that no initiative to change R787 will be taken.
June 21 2013
IATA Files Reply to Stakeholder
Comments to DOT
IATA files reply to comments to DOT filing, responding to claims and concerns. IATA request DOT to approve R787 with conditions, instead
of agreeing to rewrite R787 to accommodate concerns and industry requirements.
July
IATA meets WTAAA in WAS
IATA meet WTAAA – confirmed that IATA will not amend R787 - no support for NDC from WTAAA.
July
American Antitrust Institute and
Open Allies files additional
comments to DOT
AAI files in strong opposiiton to IATA. Open Allies (a coalition of 400 organisations, consumer organisations and others) reiterating
opposition and recommending that DOT rejects the application from IATA.
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IATA’s ambisjon
Viktige mangler/utfordringer ved R787/NDC:
• Ingen sentral PNR
• Ingen nøytral billettering
• Ingen interlining eller støtte for
intermodality
• 100% av transaksjoner
til flyselskapets system
• Autentisert kjøp, bruk av
personlige og historiske
data til personifisering
• R787 er «Direct Connect» - og av mange sett som en sammenblanding av kommersielle, tekniske og funksjonelle ambisjoner
• R787 etablerer potensielt en helt ny teknisk arkitektur* der all informasjon «eies» av flyselskapets eget system, alle transaksjoner sendes til (og
besvares av) flyselskapet, og alle transaksjoner er basert på informasjon om hvem som spør
• R787 er av mange betraktet som forsøk på å etablere en ny forretningsmodell, selv om IATA hevder det er en standard. Det er ingen tekniske
beskrivelser i R787, som kalles en «foundational standard», den første i sitt slag
• Det finnes ingen «business case» - kostnader og inntekter er høyst usikre, men utviklingskostnadene kan bli betydelige – usikkert om mindre
flyselskaper har evne til å implementere og hvilke kostnader som påføres reisebyråer. Intensjonen er at pilottester skal identifisere potensialet.
*IATA Resolution 787 Pictogram
Areas of Concern Voiced on IATA Res 787 NDC by Industry Stakeholders
Governance
• Only 38 airlines voted on Resolution 787 at IATA WPS in October 2012 – IATA claiming «industry collaboration» among all stakeholders (IATA)
while no other stakeholders have been involved in the process
• Resolution binding on all member airlines, R787 also specify that «system providers shall use...» (IATA)
• Decision to approve resolutions in IATA is by acquiescence – i.e. no airline actually votes FOR the regulation, only those
AGAINST and ABSTAINING are required to show hands (airlines, IATA governance)
Process, Approach,
and Communication
• «New Business Model» to «revolutionise» airline distribution» - “Enhanced content” not defined, but key term in R787
• Airline centric, no industry stakeholder or TA involvement in developing the NDC concept, no small, independent airlines in PDG
• A vote by 38 of IATA airline members at the World Passenger Symposium approved the resolution that makes it mandatory for all 240+ IATA
airlines distributing «enhanced content» (Res 787) (TK and JL abstained!)
• IATA communication biased and often factually incorrect (e.g.. on technology capability of Amadeus) on topics related to R787/NDC, especially
on outcomes of NDC
Technical
• Travel agency requirements not considered (no central PNR, payment, ticketing, or post sales suppport)
• End of Push model, fare filing via ATPCO not part of NDC, no support of interlining (codeshare?)
• Pull model, completely changes architecture and role of PSS, concerns about scalability, costs, and ability of airline PSS to handle dramatically
increased search transaction volumes (airline PSS generally handle only 5% of transactions in the indirect channel)
• Open Axis XML standard adopted by PDG Jan 13
Commercial
• No business case, although NDC assumes increased revenues and reduced costs , to be verified by pilots (IATA)
• Assumption made by R787 that contradict current commercial arrangements (ECTAA European Travel Agency Association), ASTA (American
Travel Agents Association, etc.)
• Unclear cost implications, potentially large costs for airlines and travel agents, may discriminate smaller airlines (TTA, et al)
• No backward compatibility is potentially jeopardising efficiencies by excluding «hybrid» approaches that may be more viable (Amadeus etc.)
• R787/NDC is Direct Connect – reinstating individual airline systems to connect to travel agents – costly and disruptive for travel agencies –
limited traction in US or Canada despite AA and AC efforts – going back 25 years (airline systems connecting to travel agencies) (ECTAA, ASTA,
etc.)
Legal/
Regulatory
• Concerns about possible agreement among airlines which would reduce competition among them, and impose new market conditions on
others (American Antitrust Instritute, Open Allies, regulators, et al.)
• Concerns that it Increases likelihood of abuse of dominant position by dominant airlines (by reducing transparency and through price
differentiation), and therefore may disciminate against airlines competing in non-home markets (ECTAA, consumer groups, airlines, regulators)
• «Who is asking» approach may infringe data privacy principles and anti-discrimination rules (Regulators, Consumer organisations, EU Article 29
Working Party etc.)
• Assumed data/content/PNR ownership may contradict regulation and commercial agreements (ECTAA, ASTA, etc.
• Passenger rights may be violated by «who is asking» approach, e.g. for vulnerable consumers or passengers with reduced mobility (European
Disabled Forum, European Passenger Federation, Open Allies, European Parliament)
• ~90% of filings before the DOT oppose approval of R787 –38 airlines file support directly (IATA)
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Reaksjoner
•
•
38 flyselskaper har offisielt støttet NDC overfor DOT i USA
Mer enn 350 andre virksomheter har offisielt uttrykt skepsis og motstand,
inkludert flyselskap og aktører som ikke har noen rolle i industrien
• American Antitrust Institute:
“the Application raises fundamental concerns about the intent of the XML-NDC proposal as a
competition-neutral or competition-enhancing process. The record evidence indicates that IATA’s
adoption of Resolution 787 may not reflect an open and inclusive stakeholder process. . . .
Deviation from an inclusive process would cast a shadow on the intent of Resolution 787,
potentially raising pressing policy questions or even – if the outcome is anticompetitive –
antitrust liability.”
• EU Article 29 Working Party (arbeidsgruppe sammensatt av medlemslandenes
personvern-myndigheter/datatilsyn) har uttrykt stor bekymring for R787 når det
gjelder personvern og datasikkerhet
«...in light of all these elements, WP29 considers that the NDC project raises a number of
privacy and human rights concerns, in particular those related to the profiling of
individuals. Therefore, data protection authorities have to look at all potential impacts of
this system.”
Reaksjoner fra GBTA
•
•
•
38 flyselskaper har offisielt støttet NDC overfor
DOT i USA
Mer enn 260 andre virksomheter har offisielt
uttrykt skepsis og motstand, inkludert aktører
som ikke har noen rolle i industrien
American Antitrust Institute:
“the Application raises fundamental concerns about the
intent of the XML-NDC proposal as a competitionneutral or competition-enhancing process. The record
evidence indicates that IATA’s adoption of Resolution
787 may not reflect an open and inclusive stakeholder
process. . . . Deviation from an inclusive process would
cast a shadow on the intent of Resolution 787,
potentially raising pressing policy questions or even – if
the outcome is anticompetitive – antitrust liability.”
GBTA filing before DOT May 2013
Amadeus’ Position on R787
• Amadeus continues to support the objectives of the airline industry in exploring different and
improved ways of offering services through both direct and indirect channels. Amadeus also
generally supports the standardization of processes within the industry.
• Amadeus believes that these objectives can only be achieved as part of a truly collaborative
and industry-wide approach to the issue. We were encouraged that IATA seemed to recognize
that and committed itself to such an approach in the Resolution passed at its AGM in June
2013 and in its reply to comments made to the DoT on June 21.
• IATA’s new AGM Resolution addressed virtually all of the concerns Amadeus had expressed
about NDC:
–
–
–
–
the mandatory requirement of Resolution 787/NDC;
the lack of backward compatibility and inter-operability with existing systems;
assumptions on content ownership, and
how Resolution 787/NDC prescribes the use of personal data
• Amadeus also believes that provisions to enable price transparency and content comparison
should be included
• IATA must now make good the commitments in the AGM Resolution and formalise them in
amendments to Resolution 787 (which governs NDC). We have for a long time suggested that
IATA rewrites Resolution 787 and urge IATA to include all industry stakeholders in the redrafting process, to obtain the cross-industry collaboration required to deliver solutions that will
bring value to the whole industry.”
13 September 2013